No urgency, says court
No urgency, says court

No urgency, says court

The High Court has ruled that the deposed SME Bank executives can use regular routes for relief.
Fred Goeieman
The High Court has refused to grant urgency to an application involving the suspended executives and directors of the SME Bank who are claiming that the Bank of Namibia (BoN) acted unlawfully when it dismissed them.

Judge Shafimana Ueitele in his ruling said the applicants must set good reasons why they cannot get a redress in a normal course of action.

The central bank on 24 February this year removed the bank's directors and the executives and took charge of the SME Bank following the discovery of what appeared to be unsound investments of close to N$200 million in South Africa.

The applicants in the matter include the bank's CEO Tawanda Mumvuma, finance manager Joseph Banda, General Manager of Treasury and Investments Alec Gore, Chairperson of the Board George Simataa, Vice-Chairperson Enock Kamushinda and ordinary director Ozias Bvute. They have been ordered to pay the costs of the respondent.

The applicants described the action as extra-ordinary and invasive and lodged a challenge on urgent basis.

Mumvuma had stated in sworn statement that the application is extremely urgent as the illegality, apart from the direct and immediate irreparable harm it has caused, is also incompatible with the requirements of the rule of law.

Further ground for urgency they said, was that the bank is currently being run unlawfully by a purported interim board of directors appointed by the chairperson of the BoN board and its director when it does not have such powers.

The Bank of Namibia on 24 February announced that it has taken control of the SME Bank, including all its assets, following questionable investments in neighbouring South Africa.

The governor of the Bank of Namibia Ipumbu Shiimi announced that the SME Bank CEO, its board, the manager for treasury and that of finance have all been removed pending an investigation. Benestus Herunga was been appointed as the interim CEO and an interim board was also appointed.

Investigations into the whereabouts of over N$180 million, invested in the SME Bank by the BoN, started immediately.

The removed members of the board of directors including the CEO are Tawanda Mumvuma, Joseph Banda, Enock Kamushinda, Alec Gore, Ozias Bvute and George Simataa.

They were removed from their posts with immediate effect, following the discovery of questionable investments that did not conform to sound investment principles and reportedly placed the bank's stability at risk.

SME Bank had invested N$231.8 million in a South African company, Mamepe Capital, and a South African bank, VBS Mutual Bank, of which N$196 million is said to still be with the two South African financial institutions, while only N$37 million – including interest of N$1.7 million – had reportedly been returned to SME Bank.

It was seen by BoN to be risky and an interim board, consisting of Dennis Khama, Melani Tjijenda, Ali Ipinge and Fanuel Kisting, with Benestus Herunga as acting CEO, was appointed.

However the former board members did not lay low. The former CEO Tawanda Mumvuma, other bank directors as well as two senior executives challenged the BoN's actions. This was after Shiimi failed to heed their call to retract his “unlawful” decision to fire them.

In court the applicants argued the Bank of Namibia has misconstrued its powers and has acted unlawfully, and its illegalities are continuously prejudicing them, the public and SME Bank Limited.

Sisa Namandje appearing on behalf of the members argued his clients have since been suffering massive reputational damages, given the most degrading and public manner in which the BoN's illegal actions was taken and that they will also suffer financial losses.

According to him BoN had no power to remove a director or official of a bank and the Banking Institutions Act only allowed it to write to the SME Bank to remove its directors and added that the removal of the SME Bank directors and officers was thus null and void.



FRED GOEIEMAN

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Namibian Sun 2024-03-29

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Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 233.12/OZ UP +1.93% | Copper US$ 3.99/lb UP +0.12% | Zinc US$ 2 455.50/T UP 0% | Brent Crude Oil US$ 87.65/BBP UP +1.46% | Platinum US$ 908.62/OZ UP +1.53% Sport results: European Championships Qualifying: Bristol City 1 vs 0 Leicester City English Championship: Bristol City 1 vs 0 Leicester City Weather: Katima Mulilo: 19° | 36° Rundu: 19° | 29° Eenhana: 19° | 29° Oshakati: 21° | 30° Ruacana: 20° | 33° Tsumeb: 19° | 29° Otjiwarongo: 16° | 29° Omaruru: 19° | 32° Windhoek: 17° | 29° Gobabis: 17° | 30° Henties Bay: 16° | 20° Wind speed: 22km/h, Wind direction: S, Low tide: 11:22, High tide: 05:24, Low Tide: 23:26, High tide: 17:46 Swakopmund: 16° | 17° Wind speed: 24km/h, Wind direction: SW, Low tide: 11:20, High tide: 05:22, Low Tide: 23:24, High tide: 17:44 Walvis Bay: 16° | 22° Wind speed: 27km/h, Wind direction: SW, Low tide: 11:20, High tide: 05:21, Low Tide: 23:24, High tide: 17:43 Rehoboth: 19° | 30° Mariental: 23° | 34° Keetmanshoop: 24° | 35° Aranos: 22° | 33° Lüderitz: 15° | 28° Ariamsvlei: 24° | 35° Oranjemund: 14° | 25° Luanda: 27° | 28° Gaborone: 20° | 32° Lubumbashi: 17° | 26° Mbabane: 16° | 21° Maseru: 11° | 29° Antananarivo: 16° | 27° Lilongwe: 17° | 27° Maputo: 20° | 28° Windhoek: 17° | 29° Cape Town: 17° | 28° Durban: 20° | 24° Johannesburg: 16° | 24° Dar es Salaam: 26° | 32° Lusaka: 20° | 30° Harare: 16° | 29° Economic Indicators: Currency: GBP to NAD 23.82 | EUR to NAD 20.37 | CNY to NAD 2.61 | USD to NAD 18.88 | DZD to NAD 0.14 | AOA to NAD 0.02 | BWP to NAD 1.33 | EGP to NAD 0.39 | KES to NAD 0.14 | NGN to NAD 0.01 | ZMW to NAD 0.74 | ZWL to NAD 0.04 | BRL to NAD 3.77 | RUB to NAD 0.2 | INR to NAD 0.23 | USD to DZD 134.66 | USD to AOA 832.63 | USD to BWP 13.71 | USD to EGP 47.35 | USD to KES 130.98 | USD to NGN 1303.34 | USD to ZAR 18.88 | USD to ZMW 25.01 | USD to ZWL 321 | Stock Exchange: JSE All Share Index 74536 Up +0.85% | Namibian Stock Exchange (NSX) Overall Index 1528.69 Up +0.84% | Casablanca Stock Exchange (CSE) MASI 12986.94 Up +0.04% | Egyptian Exchange (EGX) 30 Index 27559.35 Down -2.36% | Botswana Stock Exchange (BSE) DCI Same 0 | NSX: MTC 7.75 SAME | Anirep 8.99 SAME | Capricorn Investment group 17.34 SAME | FirstRand Namibia Ltd 49 DOWN 0.50% | Letshego Holdings (Namibia) Ltd 4.1 UP 2.50% | Namibia Asset Management Ltd 0.7 SAME | Namibia Breweries Ltd 31.49 UP 0.03% | Nictus Holdings - Nam 2.22 SAME | Oryx Properties Ltd 12.1 UP 1.70% | Paratus Namibia Holdings 11.99 SAME | SBN Holdings 8.45 SAME | Trustco Group Holdings Ltd 0.48 SAME | B2Gold Corporation 47.34 DOWN 1.50% | Local Index closed 677.62 UP 0.12% | Overall Index closed 1534.6 DOWN 0.05% | Osino Resources Corp 19.47 DOWN 2.41% | Commodities: Gold US$ 2 233.12/OZ UP +1.93% | Copper US$ 3.99/lb UP +0.12% | Zinc US$ 2 455.50/T UP 0% | Brent Crude Oil US$ 87.65/BBP UP +1.46% | Platinum US$ 908.62/OZ UP +1.53%